Harare vendors are now declining Zimbabwe dollar notes, colloquially known as bond notes, following the introduction of the new ZiG dollar. This refusal has left consumers in a bind, as traders struggle to provide change for amounts less than US$1, forcing buyers to purchase items not on their shopping lists.
Despite Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanu’s announcement that old notes would cease to be legal tender by the end of April, traders persist in rejecting them. Mushayavanhu also stated that ZiG notes and coins would enter circulation on April 30, 2024, allowing the Reserve Bank to conduct an extensive educational campaign on the key security features of the new currency.
In an interview with NewZimbabwe.com, Jane Makura, a vendor from the Dzivarasekwa high-density suburb, echoed sentiments shared by many ordinary citizens. She expressed uncertainty about the value of bond notes, fearing they might become worthless, and advocated for the use of US dollars instead of constantly changing currencies and removing zeros.
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Most tuckshops in Dzivarasekwa, Warren Park, Highfields, and other high-density suburbs are no longer accepting bond notes. The new ZiG dollar, described by NewzWire as “Mushayavanhu’s clever way of removing zeros from Zimbabwe’s currency,” has been introduced at an exchange rate of US$1 to ZiG$13.5.
Last week, economist Gift Mugano highlighted several factors that he believes will undermine the ZiG, including a large informal sector dominating the economy, a lack of confidence, decreased production, excessive liquidity due to treasury money printing, societal discord, policy ambiguity, and external pressures like drought and subdued commodity prices. Harare vendors
